GM Korea to Fight European Imports With ‘Dark Horse’ Cadillac ATS

GM Korea is bringing the new Cadillac ATS compact luxury sports sedan to Korea to compete with the growing number of imports chipping away at the domestic market.

Unveiled today at a launch event in Seoul, the auto maker is labeling the ATS its “dark horse” as it looks to go head-to-head in the market against such offerings as the BMW 3-Series.

“The whole process to develop the ATS, from design to development and testing at Germany’s Nurburgring, nicknamed the Green Hell for its demanding racing circuit, was focused on one goal – creating the world’s best sports sedan that delivers quick, nimble and fun-to-drive dynamics,” GM Korea President Chang Jaejoon says.

“The Cadillac ATS will present our customers a special space armed with the best-in-class performance, a highly refined design and advanced control and safety systems.”

Marketed and serviced through GM Korea’s dealer network, the new ATS is available with the full range of advanced electronics and safety systems offered in other markets.

It will be sold in three trim levels and in rear- and all-wheel drive versions. Rear-drive models start at 47.5 million-52 million Korean won ($44,708 - $48,944), including value-added taxes. The AWD model is based at 55.5 million won ($52,238).

Like other domestic auto makers, GM Korea is feeling the effects of the inroads made by a whole range of imported vehicles in the local market.

The imported-car segment in Korea surged 24.6% with 130,858 vehicles sold in 2012, reflecting increased demand for luxury brands and the positive effects of the U.S.-Korea and Europe-Korea free-trade agreements, according to the Korea Automobile Importers and Distributers Assn.

The local imported-car market has expanded thanks to consumption-tax cuts, tariff reductions following the free-trade deals and demand for small diesel cars, says KAIDE Executive Director Yoon Dae-sung.

BMW led the field with 28,152 vehicles sold. Mercedes-Benz was first runner up with 20,389 units. Volkswagen sold 18,395, followed by Audi (15,126) and Toyota (10,795).

Of the import vehicles sold in 2012, European brands accounted for 74.3%, or 97,210 vehicles, while the Japanese controlled 18.3% of the market and U.S. auto makers 7.4%.